Irrecoverable debt | Baamboozle - Baamboozle | The Most Fun Classroom Games!

English 9 Public

accounting

Study Slideshow

A decrease in the provision for doubtful debts would result in..... How does it affect the profit?

an increase in net profit (profit for the year)

An increase in the provision for doubtful debts would result in... How does it affect the expenses?

an increase in expenses

Double entry for irrecoverable debts:

Dr: Irrecoverable debts and Cr: Trade receivables

Explain provision for doubtful debt

Estimate of the amount which will not be collected

Irrecoverable debt increases on

debit

Provision for doubtful debt increases on

credit

Bad Debt recovered increases on

credit

The provision for doubtful debt will be recorded under SOFP as

current asset

Irrecoverable debt is recorded in income statement as

Expenses